Feb.16,2011, China Telecom announced its "Broadband China, Optical network City" strategy this afternoon in Beijing. Including Mr. Wang,xiaochu, CEO of China Telecom, nearly the total managing team of the carrier appeared on the news conference. The company announced that they will increase FTTH subscribers by 30million in 2011, 3 times as all subscribers obtains in the past 5 years, and they will build fiber access network in all cities of mainland China in 3 years.
Mr. Sun,Junyan, general manager of network development department of China Telecom told the media that the bandwidth of their backbone internet doubles every 17 months. In past 5 years, China Telecom has invested nearly 150billion Yuan on broadband network. In the future 5 years, China Telecom aims to increase 20M bandwidth network cover rate to more than 80% in all major cities of mainland China, to reach 100% FTTH cover rate in all cities of southern China, over 100 million home has 100Mbps bandwidth cover. At the same time, China Telecom will reduce their price per bandwidth greatly in 3 years. Besides the broadband network developing, China Telecom will also build their M2M and cloud platform to provide more new applications to customers in the future.
On the other hand, Wang,xiaochu talked more about China Telecom¡¯s current broadband network. According to him, China Telecom now has more than 110 million broadband terminals, including 20million PON terminals, more than 70 million broadband customers. Total bandwidth of China Telecom¡¯s backbone Internet ChinaNET reaches 20T, international bandwidth reaches 440G. With the rolling out of China Telecom¡¯s "Optical fiber replacing copper" strategy, in major southern cities, 20M bandwidth cover rate has increased from 10% to 58%; 4M bandwidth cover rate has increased from 53% to 98%; FTTH network has covered 10 million homes; Fiber has been connected to all commercial buildings; 70% villages in southern China has been connected with fiber.
For the first time, China Telecom puts FTTH on a very high position. In Sun,Junyan¡¯s speech, He mentioned that ultra broadband network has been raised to national strategic level by many European, North American and Asian Pacific countries. All those countries have made hugh investments on broadband network constructing. China¡¯s most recent 12th five year plan also required to put information industry on a very high position. However, compared to those advanced nations, China¡¯s broadband network still has many problems. By the end of year 2010, only 23% Chinese families have broadband connection.
China Telecom also predicated that their new FTTH strategy will bring tens of billion Yuan business opportunities for fiber optics industry. This huge business opportunity will be a big boost for China¡¯s telecom industry. At the same time, the rolling our of this strategy also puts huge request on engineers in the fields of optical network building, maintaining and marketing. This is also a big boost to the whole society.